Westar issues stock

Topeka Capital-Journal, The, Nov 17, 2007

The Capital-Journal

Westar Energy Inc. has priced an offering of 7.6 million shares of its common stock at $25.25 per share.

The stock offering could raise more than $190 million.

Westar Energy said it will use proceeds to pay off short-term debt incurred to fund its investments in electric utility infrastructure, including large projects to reduce air emissions from its power plants; construction of new natural gas-fired turbines; construction of new high-capacity transmission lines; and significant investments in wind turbines pending receipt of satisfactory regulatory pre-approval, along with funding general corporate purposes.

J.P. Morgan Securities Inc. and UBS Investment Bank are acting as the joint book running managers, and, together with Wachovia Capital Markets LLC, are joint lead managers.

Other underwriters for the offering are Citigroup Global Markets Inc., Credit Suisse Securities LLC, Deutsche Bank Securities Inc., Edward D. Jones & Co. L.P. and Wedbush Morgan Securities Inc.

In connection with the offering, the company entered into an agreement with an affiliate of UBS Investment Bank under which the company has agreed to sell 7.6 million shares of the company's common stock at approximately $24.37 per share.

Westar Energy has been going to Wall Street all year to raise money. The company raised $100 million in the spring through the sale of 3.7 million shares at an average price of $27.02 per share.

Having an increase in outstanding stock will require the company to pay out more in dividends. Total shares outstanding on Aug. 1 were 91.49 million shares, up from 87.23 million shares a year earlier.

The company has paid $1.08 per share in dividends in the past four quarters.